@KMJK K-1 losses have layers of limitations.
You must have a basis in the partnership; you must be at-risk in the business, and you must be an active participant in the business to have your K-1 losses offset other income on your tax return.
The basis limitation is a limitation on the amount of losses and deductions that a partner of a partnership can deduct. The basis limits are the first of three limitations that are applied to Schedule K-1 losses and deductions. After the basis limits are applied, the At-Risk limits on Form 6198 are applied. If losses are allowed by the basis and at-risk limits, the Passive limits Form 8582are applied, if applicable. All of these questions can be answered during the K-1 entry process.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
